20 May, 2020

3 Things To Think About When Choosing A New Car In Malaysia

When buying a new car, it is recommended that you spend no more than one-tenth of your annual salary on its purchase, according to personal finance website Financial Samurai. Still, this can add up to a sizeable investment on your part. Malaysians are known for spending more on cars. High import and sales taxes coupled with maintenance expenses and installment loan interest charges can mean you are often looking at speeding at least RM800 per month on car expenses. With it being such a large investment, it is important that you get it right when choosing a new car.

New foreign-made cars are extremely expensive in Malaysia, so it is worth taking a look at your budget to ascertain if you can afford the high excise costs. In Malaysia, excise duty averages between 60 and 105 percent. If you are insistent on purchasing a new car, local brands such as Proton, Perodua, and Hyundai Malaysia can help you keep your costs down. You can also opt for a second-hand car. Before heading out to buy one, take the time to research the different vehicle models ratings by other drivers. With such high costs attached to buying new cars, the Malaysian market is flooded with second-hand options. This will help you identify a reliable and budget-friendly model.

Can You Afford The Car And Its Aftercare?

Besides the initial purchase price or monthly installments, you should be prepared to pay for road tax, auto insurance, petrol, parking and annual maintenance. The road tax in Malaysia averages RM90 yearly and is dependent on your engine capacity, region and car type. For instance, a saloon with a 1600 cc engine capacity and owned in the Labuan region is required to pay RM28 in road tax annually.

Then there are the annual maintenance, repairs and insurance for your motor car. The road Transport Act 1987 stipulates that all motor car owners must have road tax and motor insurance. Some car models will also have different insurance costs. This also protects you from additional costs in the event you are involved in a road accident. Keep all of these costs in mind when deciding on what car to choose.

Have You Done A Test Drive And Assessment Of The Car?

In a recent survey, 39 percent of car buyers said the ride and handling of a vehicle was an important consideration when buying a new car. While its features may look great on paper, it is only by test driving a vehicle that you can experience these features in action. For instance, you'll want to look at how well the car handles turns and corners and how responsive its steering is. This can prove to be very useful in emergencies such as emergency braking. Other things to look for in your test drive include its braking, fuel economy and wheel bearings.

You also want to ensure any cars you are considering have been checked by an independent repair shop, particularly if you are buying a second-hand car. Many second-hand sellers neglect to mention issues in an attempt to command a higher price on the car. Getting a certified second opinion makes sure there are no nasty surprises later.

Buying a new car is truly a long term investment.

Therefore, you want to ensure you not only get the best price, but get the best car too.